ISLAMABAD: Federal government has announced to increase ex-depot prices of all petroleum products up to Rs 4.15 per litre with effect from January 1, 2022.
Later Friday night, Finance Division stated that in the fortnightly review of petroleum products’ prices, Prime Minister has rejected the proposal of Oil and Gas Regulatory Authority (OGRA) for increase in prices of petroleum products and advised to increase only Rs 4 per litre to meet the petroleum levy (PL) target agreed with the IMF.
It further says that sale tax on petrol and High Speed Diesel (HSD) has been adjusted downwards as compared to December 16, 2021 to keep prices lower.
The ex-depot price of Petrol and HSD are increased by Rs 4 per litre. The ex-depot price of light diesel oil (LDO) increased by Rs 4.15 per litre and Rs 3.95 per litre increased the price of Kerosene Oil (SKO) for first half of January 2022.
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New price of petrol is increased to Rs 144.82 per litre, the ex-depot price of HSD is increased to Rs 141.62 per litre from Rs 137.62 per litre. The rate of Sko is raised to Rs 113.53 per litre from Rs 109.53 per litre and LDO price is increased to Rs 111.06 per litre from Rs 107.06 per litre.
The PL rate on petrol is raised to Rs 17.62 per litre from Rs 13.62 per litre. The PL rate on HSD is also revised from Rs 13.14 to Rs 17.14 per litre. The PL rate on SKO is increased to Rs 9.86 per litre and LDO rate is increased to Rs 7.66 per litre.
Federal Board of Revenue (FBR) has yet to notify the new rate of GST on petroleum products with effect from January 1, 2022. However, the GST on petroleum products was notified with effect from December 16, 2021 was increased to 4.77 percent from 1.63 percent on petrol, the HSD rate was also increased to 9.08 percent from 7.37 percent. In addition, the GST on SKO and LDO were also revised upward. SKO rates were 8.30 percent after increased from 8.19 percent and LDO rates is increased to 2.70 percent from 0.46 percent.
Copyright Business Recorder, 2022